Smaller, less-expensive shows still work in concert industry's summer of 'doom and gloom'
Audience members watch a music performance at Lincoln Hall, a smaller venue that's been successful in its first year open. (Tribune photo by Andrew A. Nelles)
The arena and amphitheater-level concert industry – a cornerstone of rock touring since the ‘60s – is slumping in what is normally its most profitable time of year.
Summer is traditionally when the touring business makes two-thirds of its revenue. But a few weeks ago, executives of Live Nation Entertainment – the country’s largest concert promoter and ticket seller – reported a 12 percent decline in revenue and lashed out at shareholders for abandoning the company as the value of its stock plummeted.Overall, the top 100 tours are down 17 percent in revenue, posting their lowest midyear total since 2005, according to trade publication Pollstar. The average number of tickets per show has dropped to 6,951 from 7,639.
Another large-scale concert event -- Lollapalooza, one of the most commercially successful rock festivals ever staged in Chicago -- rolls into Grant Park Aug. 6-8 under a legal cloud: an antitrust investigation by the Illinois attorney general’s office.
But on a smaller level, things aren’t quite so dire. In Chicago, clubs such as Buddy Guy’s Legends in the South Loop have expanded and attracted more business, and nearly a year after its opening, Lincoln Hall has solidified its status as a top North Side concert venue. The Old Town School of Folk Music recently announced plans to expand, and will be operating three concert venues by late 2011. The Pitchfork Music Festival in Union Park sold out all three days in Union Park in mid-July. Attendance at weekend street festivals continues to be strong. Independent concert promoter Jam Productions reported an increase in ticket sales over last year, bucking the industry trend, according to Pollstar.